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FINANCE MINISTER SAYS INFLATION TARGET WILL REMAIN AT FOUR TO SIX PER CENT

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KINGSTON, May 8 (JIS):

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, has informed that the current inflation target for the Bank of Jamaica will remain at four to six per cent.

Dr. Clarke made the announcement during a statement to the House of Representatives on Tuesday (May 7).

He explained that the process for setting and renewing the target was codified into law via the Bank of Jamaica Amendment Act 2020, which, among other things, formally introduced Jamaica’s inflation targeting regime.

Dr. Clarke stated that in April 2021, after consultation with the Bank of Jamaica, documents were tabled advising of the renewal of the inflation target of four to six per cent, which was effective for three years.

“Following consultation with the Governor of the Bank of Jamaica, who is also Chairman of the Monetary Policy Committee, I confirm and have so tabled documents advising that the inflation target for Jamaica, calculated as the 12-month point-to-point percentage change in the consumer price index as measured by STATIN, will remain at four per cent to six per cent for the next three years,” Dr. Clarke said.

“The midpoint of this range of five per cent will be the operational target for the Monetary Policy Committee. This target remains consistent with Jamaica’s economic structure and stage of development,” he added.

The Minister noted that a lower inflation target than what currently obtains would require higher interest rates for longer, which could be detrimental to growth and to fiscal dynamics.

Furthermore, Dr. Clarke said Jamaica’s recent experience has highlighted that there are constraints to targeting a lower inflation rate at this time.

“In particular, the frequency of economic shocks, labour market rigidities, low productivity, a weak monetary transmission system and regulated price adjustments, constrain the ability of the Bank of Jamaica to deliver a lower inflation rate than what is currently targeted in the near term,” the Minister said.

Dr. Clarke stated that these constraints speak to inherent challenges that as a country “we must tackle if we are to target and enjoy the levels of inflation of our main trading partners”.

“Going forward, I will support all efforts to ameliorate these constraints. On the other hand, setting the target higher than four per cent to the six per cent range would be problematic for most Jamaicans who do not have the independent means to protect themselves against higher targeted inflation,” he noted.

Dr. Clarke explained that it is for these reasons that the inflation target for Jamaica, calculated as the 12-month point-to-point percentage change in the consumer price index as measured by the Statistical Institute of Jamaica (STATIN), will remain at four to six per cent for the next three years.

 

CONTACT: LATONYA LINTON

 

Caribbean News

NWC Working Towards Full Water Restoration Following The Passage of Hurricane Beryl

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#Kingston, Jamaica, July 5, 2024 – The National Water Commission (NWC) has mobilised teams across Jamaica to assess its supply facilities currently out of operation, consequent on the passage of Hurricane Beryl.

Acting Corporate Public Relations Manager, Delano Williams, told JIS News that a combination of factors caused by the hurricane resulted in some 70 per cent of customers being without water.

These include the flooding of roads and river sources, power supply disruption, and falling trees and debris which have blocked access roads to some facilities.

“Based on this, we’re partnering with the Office of Disaster Preparedness and Emergency Management (ODPEM), the security forces and National Works Agency as the key agencies that will help us to navigate areas that are impacted; and also, we are relying on and are in partnership with the Jamaica Public Service (JPS) for their restoration of power supply to our plants that require it,” Mr. Williams said.

He pointed out that the systems impacted by Hurricane Beryl are largely located in the southern and north-eastern sections of the island.

“St. Thomas has several systems that are out. Clarendon, Manchester and St. Elizabeth are the ones of note, but also areas in Portland and St. Mary because of the remoteness of a number of the plants that are there, and the fact that they are river sources. So, with the level of rainfall that we have [had], there is a lot of flooding, debris and turbidity that we have to resolve,” Mr. Williams said

He reminds NWC customers that the full restoration of water supply to those affected will be phased.

“Some areas will be able to come back online quickly within 24 hours. There are others which may take a little longer because of the challenges with the terrain or any delay with power supply restoration. It is also critical that we assess every single plant that is out to ensure that there is no damage that could further delay the supply of water,” Mr. Williams said.

Additionally, he reminds customers to “manage your storage levels” and “conserve where possible and share your reports quickly, as we see how best we can get your water supply back online”, while urging patience during the restoration period.

 

Contact: Jermi-Lee Nelson

Release: JIS

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Caribbean News

Ralph Gonsalves, Prime Minister of St Vincent and the Grenadines vows to ‘build back better’

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Deandrea Hamilton

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#St.VincentandtheGrenadines, July 5, 2024 – “A field of devastation” is how Ralph Gonsalves, the Prime Minister of St. Vincent and the Grenadines describes parts of his country after its dangerous dalliance with historic hurricane Beryl on Monday July 1.  Gonsalves, filming his helicopter surveillance and on the ground inspection of the damage spoke somberly about the destruction wrought on areas like Canouan, Union Island, Mayreau and Palm Island.

“Union is a field of devastation with only the odd building that is not severely damaged or destroyed.  All of the buildings are gone,” he said in a video posted to his Facebook page.

It was reported that 95 percent of buildings were destroyed in the southern islands of the country.  One person was killed when the storm hit as a Category 4 cyclone.

“There is a sense of shock among the people, yet at the same time their determination to rebuild.  Many would like to leave and some came up to me on they want to build it back, build it back better and stronger.”

The second named storm of the Atlantic Hurricane Season rapidly intensified, becoming the earliest Category 5 hurricane on record and with it, violent winds which felled trees, ripped off roofs, smashed structures and wiped out infrastructure.

“There is a lot of trauma.  The faces of men, women and children are strained; it is an extraordinarily difficult time.  Everywhere I go, I am optimistic with people who want to build back. They are saying we are depending on you, we are relying on you.”

He estimates that the need for resources will be great.

“Building back here is going to be huge.”

The Prime Minister surmised that rebuilding will require a commitment to solidarity of “our people and our allies in the region and the international community, but I am sure we will get there.”

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Caribbean News

From Awareness to Action: Public Health Matters

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July 5, 2024

 

Caribbean Public Health Day (CPHD) is celebrated annually on July 2nd to raise awareness about public health’s vital role in the lives of Caribbean people, and to highlight the work of the Caribbean Public Health Agency (CARPHA). This day coincides with the anniversary of CARPHA, the region’s sole public health agency, legally established in July 2011 and operationalized in 2013 following the signing of an Intergovernmental Agreement by CARICOM Heads of Government.

This year’s CPHD theme, “From Awareness to Action: Public Health Matters,” brings to light the many daily activities that are influenced by multi-sectoral public health interventions. It also calls for individual actions to support public health efforts as we all contribute to the sustenance and development of Healthy People, Healthy Spaces and a Healthy Caribbean. By participating in local health initiatives, advocating for safe environments, and practicing and promoting healthful behaviours, we can all be champions of public health.

“Public health is more than preventing diseases; it’s a holistic approach to improving the health of people and their communities, including the air we breathe, the food we eat, our lifestyle behaviours and the environment we live in,” said Dr Lisa Indar, Ad Interim Executive Director at CARPHA when asked for comment.

Dr Mark Sami, Director of Corporate Services at CARPHA, added, “This day allows us to reflect on public health’s broader meaning. It is a right for every Caribbean citizen, and CARPHA is dedicated to being the region’s strongest advocate for healthful practices at all levels of society.”

CARPHA advances regional health under the principle that the health of the region is the wealth of the region. By promoting overall health, providing strategic direction and responding to public health priorities, implementing frameworks for disease prevention and control, supporting Member States response to health emergencies and supporting the objectives of the Caribbean Cooperation in Health (CCH), the Agency stands at the forefront of regional development.

We invite everyone to learn more about CARPHA’s role in public health and how individual actions can contribute to a healthier and safer Caribbean. Visit www.carpha.org and follow us on Facebook, Instagram, X (Twitter), and LinkedIn for more information.

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